In this paper the decision of adopting of new technologies is studied trought a multistage model. It incorporates multiple sequential technological innovations and the possibility of implementing that have already been discovered. It is shown how such decision is effected by the relevant...

In this paper we study the choice of competing technologies with increasing returns occasioned by learning-by-doing and learning-by-using phenomena. We study under what circumstances one technology can achieve a monopoly and eventually take the whole market by formulating a firm's optimal...

Dynamical systems of self-reinforcing mechanisms tend to possess a multiplicity of asymptotic states or possible "emergent structures".

This paper examines the equilibrium adoption patch for two innovations when there are "network externalities". We show that the existence of significant increasing returns in system-scale can give the result that one variant will drive out the other one and so emerges as the unique standard for...

We consider the possibility of switching between two technological standards when there are network externalities and imprecise market information. Multiple equilibria in terms of market shares can arise. The main result is that lock-in to one of multiple equilibria is not a permanent out- come...

This paper developes an evolutionary model to discus the issue of efficiency in non-profit organisations. The ideological commitment that characterizes most of them is depicted through the introduction of a role for moral and social norms. It comes out that attracting motivated employees can be...

We study the destabilising effect of dynamic hedging strategies on the price of the underlying in the presence of sunk costs of transaction. Once sunk costs of transaction are taken into account, continuous portfolio rehedging is no longer an optimal strategy. Using a non-optimising (local in...

We introduce explicitly the effort as a choice variable in a continuous time utility maximisation framework of an executive who is partly compensated with stock options. We solve the model in the case where the executive is not allowed to trade in the company's stock but is able to achieve a...

This paper develops a real option model in which the interaction between debt, liquidation policy and risky investments is studied. We consider a manager who owns the firm and faces the opportunity to invest in risky projects which boost current profits at the cost of bankruptcy if they turn out...

A bank closure policy problem is analysed in a mathematical model within a Black-Scholes framework where an appropriate notion of capital adequacy is introduced. The value of the deposit insurance liabilities and bank equity are derived. The effects of capital requirements on risk-shifting and...